• Critical One, Dark Star sign deal on Namibia uranium projects
• Dark Star gains control; Critical One gets 18.5% stake, $760K
• Projects in Erongo province include Cobra North, Khan West deposits

Canadian mining companies Critical One Energy and Dark Star Minerals have reached a new investment agreement for the Cobra North and Khan West uranium projects in Namibia. According to details released in a Tuesday, September 2, note, the two companies will collaborate to exploit the potential of these uranium projects.

The deal involves Critical One selling its exclusive stakes in both projects to Dark Star. In return, Dark Star will cede an 18.5% share of its capital to Critical One, along with staggered payments totaling $760,000. This transaction gives Dark Star operational control of the assets while ensuring Critical One remains involved as a shareholder.

This type of agreement is common in the mining industry, especially for projects in the exploration phase. It can improve access to necessary funding for operations, as opposed to a scenario where Critical One would have to bear exploration costs alone. The agreement stipulates that Critical One will cover up to 30% of the funding over the next 12 months, until Dark Star succeeds in raising $10 million.

The two projects are located in the uranium-rich Erongo province, a strategic region that hosts Namibia's major uranium mines, including Rossing, Husab, and Etango. Cobra North has a deposit identified in 2015 that contains 9 million pounds of uranium. Khan West is notable for its geological structure, which is said to "closely resemble the Rossing deposit."

The companies have not yet announced new exploration programs for the sites. Dark Star plans to update the mineral resources for Cobra North, but the details of this initiative have yet to be specified.

Aurel Sèdjro Houenou